MESSAGE FROM THE CHAIRPERSON Aloha and thank you for your interest in the activities of the Hawai‘i Department of Agriculture. The administration and staff of the department remain dedicated as ever to supporting and growing agriculture in Hawai‘i, while also maintaining our fiscal responsibilities as the economy has taken a heavy toll on state’s budget. The decrease in state revenue has required all divisions to become more efficient and innovative in our mission to provide the best possible services. Department staff realize that our services to the agricultural community are even more important during these difficult economic times and it is never far from our minds that the farmers, growers and ranchers are on the frontline of the economic challenges. The Livestock Feed Revitalization Program has been vital in saving many livestock operations by disbursing nearly $3.6 million to 26 livestock operations to help offset the high cost of imported feed. The message of the “Buy Local, It Matters” campaign resonates even louder as it encourages residents to support local agriculture. Work also continues in developing and maintaining our infrastructure assets, including irrigation systems on Maui, Kaua‘i, Moloka‘i, O‘ahu and Hawai‘i Island. In an effort to save the native wiliwili trees, HDOA released a natural predator of the erythrina gall wasp in November 2008, which appears to be working well in controlling the pest and reviving the wiliwili population. In addition, pest management surveys and research continue for varroa mites, nettle caterpillar, fire ants and other pests. Many more accomplishments by the department are contained in this report and we hope that it provides a greater picture of the important services that HDOA provides to the State of Hawai‘i. Sincerely, Sandra Lee Kunimoto, Chairperson Hawai`i Board of Agriculture 1 2 TABLE OF CONTENTS TABLE OF CONTENTS Office of the Chairperson 4 Administrative Services Office 6 Agricultural Development Division 8 Agricultural Loan Division 13 Agricultural Resource Management Division 15 Animal Industry Division 20 Aquaculture Development Program 26 Plant Industry Division 28 Quality Assurance Division 44 Agribusiness Development Corporation 46 Lists of Tables & Charts 50 Board of Agriculture - Photos 51 Organizational Chart 52 Other Tables and Charts 53 - 69 This annual report is accessible via the department’s website at: http://hawaii.gov/hdoa/ 3 OFFICE OF THE CHAIRPERSON Planning & Development The department actively seeks to protect existing Alexander and Baldwin now has access to a wide range farming areas and promote increased access to and of incentives made available exclusively to landowners productive use of the thousands of acres of prime and farmers who have their qualified agricultural land agricultural lands and infrastructure vacated by sugar designated as IAL. The process and actions required plantations throughout the state. The department, as of state and county agencies to identify potential principal advocate for agriculture among state agencies, Important Agricultural Lands (IAL) and have them offers consultative input into county, state, and federal designated are now set in motion, with the Department land use planning and permitting, environmental program having a significant role in identifying and designating development and implementation, and undertakes IAL and implementing some of the incentives such as broader planning and economic development efforts to the IAL Qualified Agricultural Cost Tax Credit. This tax ensure the availability of agricultural resources and the credit is the most significant incentives as it encourages growth of agricultural businesses. landowners/farmers to have their lands designated IAL and to establish and maintain their agricultural use by While modest in comparison to the visitor industry’s offsetting costs related to agricultural production $11.2 billion in economic activity, the economic activity including development, rehabilitation, and maintenance generated by diversified agriculture is solid and stable. of agriculturally related roads and utilities, irrigation Furthermore, characteristics associated with water facilities, leasehold agricultural housing for agricultural activity (scenic planted and open farmers and farm workers, equipment for crop landscapes, locally-grown fresh produce, reduction in cultivation, harvesting, and processing; and professional atmospheric carbon dioxide, groundwater recharge, services necessary to obtain sufficient water and responsible land stewardship) provide real value to protecting a farmer’s right to farm. Hawaii residents and visitors. The department also reintroduced but failed to get sustained support from the 2009 Legislature for the With the recent passage and enactment of the Important Administration’s “fake farm” measure that sought to Agricultural Lands Incentives Act (Act 233, 2008 Session mitigate problems arising from the proliferation of “fake Laws of Hawai`i), Alexander and Baldwin, Inc. voluntarily farms” – subdivisions of agricultural land where there is sought and received approval from the Land Use little or no agricultural activity. A major impact of these Commission for Important Agricultural Land (IAL) subdivisions is that they increase the value of designation for two of their largest agricultural production agricultural lands for residential use rather than areas, Kauai Coffee Company (3,773 acres) on Kaua`i agricultural production. The price of land is often far and Hawaiian Commercial and Sugar Company (27,104 beyond what a farm income is able to afford. acres) on Maui. 4 OFFICE OF THE CHAIRPERSON Farmers seeking to lease lands often find lease terms efforts included the submittal of testimonies and position and rents very short and expensive, respectively. The statements before county councils and departments, measure requires every lot in agricultural subdivisions state departments, State Land Use Commission, Public approved after the bill’s effective date to be used solely Utilities Commission, and other organizations on for agricultural activities, agribusiness, or subsistence agriculture-related issues such as whether bed and farming; it requires the counties to require lot owners of breakfast operations and transient vacation rentals are subdivided agricultural lands applying for a building appropriate in the agricultural district; minimizing any permit to substantially establish agricultural activity and adverse impact of proposed interim instream flow submit farm plans, prior to approving building permits; standards, buffer zones to protect agricultural activities and requires lot owners to have recorded deed from encroaching non-agricultural uses, ensuring restrictions that run with the land requiring agricultural subdivisions of agricultural land result in the use of the subdivided lots. These features are establishment and maintenance of substantial significantly more rigorous and descriptive than what agricultural activity, county-level initiatives to protect currently exists in Chapters 205 and 46, Hawai`i prime agricultural lands, facilitating discussions between Revised Statutes. farmers and landowners on “good neighbor” and land tenure issues, amendments to County agricultural The department also supported the protection of zoning and community plan ordinances, and agricultural lands and related infrastructure as well as amendments to state and federal environmental the expansion of diversified agriculture development in regulations affecting the use of agricultural land and general through a number of ongoing efforts. These water resources. 5 ADMINISTRATIVE SERVICES OFFICE ADMINISTRATIVE SERVICES OFFICE Secured the vehicle maintenance garage to protect the department’s assets; installed an alarm system and physically secured the facility with gates and heavy gage window screens. Transferred all APPX applications to new server. Completed installation of new Plant Industry server at King Street location. Completed networking all required O`ahu and neighbor island offices to State’s NGN. Developed online database to track property management requests for telecommunications Keith Aragaki and disposals. Administrator Developed online database to allow programs to view all pCard transactions charged to their The goals of the Administrative Services Office are: program’s appropriation codes. Developed a spreadsheet to project the Plant 1) To meet the staff support needs of the department’s programs and personnel by providing guidance, Quarantine inspection fees and monitor the training, information, efficient equipment and programs financial status. vehicles, and adequate facilities, and facilitating the Developed a simplified Small Business Set- processing of their requests in order to enhance aside procurement guideline to assist program managers’ decision making capabilities and administrators in meeting the State’s small employee productivity; and business set-aside goal. Developed a procurement training matrix for each 2) To meet the needs of the public by assisting them in program that shall allow them to manage the their requests or directing them to the appropriate required SPO training requirements. entity to address their needs. Completed various repair and maintenance and The following is a list of projects that have been capital improvement projects including re-roofing completed: the Plant Industry building in Kahului and repairing and repainting buildings at the King Street facility. Personnel staff attended